Analyst: Prepare for an Apple earnings miss

“Apple remains an ‘uninspired investment’ and investors should brace for disappointing iPhone sales and profit in two weeks, Nomura Instinet warned clients Wednesday,” Thomas Franck writes for CNBC. “‘We believe the investors have sufficiently dissected the key near-term drivers of the shares. Consensus estimates are likely to fall on weak iPhone demand,’ analyst Jeffrey Kvaal advised investors. ‘We add that our work into China also suggests the X malaise continues.'”

“Kvaal reiterated his neutral rating on the stock as well as his $175 price target, implying 1.8 percent downside over the next year,” Franck writes.

“His earnings per share estimate for Apple’s second fiscal quarter of $2.69 is below the consensus estimate of $2.71, according to FactSet data. He sees EPS of $2.12 in the third quarter, below expectations of $2.19,” Franck writes. “The company is expected to report earnings May 1 after the bell.”

Read more in the full article here.

MacDailyNews Take:

We believe slow carrier promotions and relatively modest feature upgrades to the 8 are shifting demand to the X, which is a positive for Apple. — Instinet analyst Jeffrey Kvaal, September 17, 2017

Apple’s iPhone captured 86% of global handset profits in Q417; iPhone X alone took 35% of global handset profits – April 17, 2018
Apple to release Q218 earnings, webcast live conference call on May 1st – April 3, 2018


  1. Bet they are right on sales of iPhone X if they are broken out.

    The demand is limited and all the new iPhones I see people with are 8’s. Between customers, clients, coworkers, family, neighbors and friends I see very very few. Most of the people I know who are on the iPhone would have upgraded by now, but they are not getting the X or are sitting this one out.

    I do not see enough of a difference in the 7 I own and the 8 to justify a purchase and I consider the thought of a $1,000 cell phone as ridiculous. If this fall shows a line stacked with Face ID and high prices I will just get an updated battery and wait another cycle.

    I also smell a recession and tend in fiscal affairs to be conservative as in cautious.

    1. Its not a 1000 for a cellphone..
      Its a 1000 for a incredible computer in your pocket. And X is not only the best.. imo its the most beautiful pocket computer ever produced, specially in silver/white. And the added screen real estate in a small form factor and the face id and the new swipe interface work flow are absolutly fantastic and worth every penny!
      The best ! .

    2. It’s interesting to note in watching the original Keynote that introduced the iPhone, that the portion of the device that received the least applause that day was the “Internet communicator“ portion. There are times when I wonder if Steve wasn’t looking far ahead enough to see the power of the computer portion of the phone, or if he was wise enough to see that the phone part was what people were most highly anticipating and played to their excitement. At this point, anyone who posts a complaint about a “$1,000.00 cell phone” is simply ignorant of the overall use of the device. For my part, the portion of the phone I use least IS the phone… I use the iPod portion much more than that and the “Internet communicator“ portion by far the most.

  2. I also have the X and think it’s the most exciting tech since the original iPhone, which I paid $500 for. As I recall, everyone thought that was an absurdly high price to pay for a phone. I still have mine.

  3. NOMURA again !!!

    starting way back in 2007 when the iPhone was launched Nomura has been bashing the iPhone. In 2007 they made a completely fake news item then that the iPhone ‘heat sensitive’ screen would fail (note how complete with details — like ‘Finnish company’ their bogus report was):


    “The revolutionary touch screen on Apple’s iPhone may not maintain its sensitivity over time, according to Nomura International analyst Richard Windsor. MarketWatch reports that Mr. Windsor is concerned that the heat-sensitive chemical layer in the iPhone display that detects touches could degrade over time, leaving users with dead spots that no longer register their fingers.
    The touch sensing technology used in the iPhone display came from a Finnish company. The company went bankrupt trying to bring the technology to market while trying to overcome a problem where displays would lose their sensitivity after three to six months.”

    OF COURSE THE IPHONE does NOT use HEAT but capacitance for the screen… But don’t let FACTS get in the way of a good Nomura story..

    Nomura’s post in 2007 together with the start of the recession started a sell frenzy which knocked the stock way down…
    I bought and bought then and my aapl is way over 10x now.

  4. I’ve owned every iteration of the iPhone, except I skipped the 8 for the X…I have to say that I have been most impressed with the X compared to any other iPhone upgrade cycle. It is extremely well made and a supper smooth experience. Great Job Apple….absolutely love the X!

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